Rogers Corporation carries an account in its general ledger called Investments, which contained the following debits for investment purchases and no credit.

Feb 1, 2014 Jordy Corporation common stock, $100 par, 200 shares $37,400

April 1, 2014 U.S. government bonds, 11% due April 1, 2024, interest payable April 1 and October 1, 100 bonds at $1,000 each $100,000

July 1, 2014 Driver Company 12% bonds, par $50,000, dated March 1, 2010, purchased at par plus acrrued interest, interest payable annually on March 1, due March 1, 2034 $52,000

Instructions:

A - prepare the entries necessary to classify the amounts into proper accounts, assuming that all the securities are classified as available for sale.

B - Prepare the entry to record the accrued interest on December 31, 2014

C - The fair values of the securities on December 31, 2014, were:

Jordy Company Common Stock $33,800 (1% of total shares)

U.S. Government Bonds $124,700

Driver Company bonds $58,600

*What entry or entries, if any, would you recommend be made?

D - The U.S. government bonds were sold on July 1, 2015, for $119,200, plus accrued interest. Give the proper entry

E - Now assume Rogers' investment in Jordy Company represents 30% of Jordy's shares. Prepare the 2014 entries for the investment in Jordy stock. In 2014, Jordy declared and paid dividends of $9,000 (on Septemeber 30) and reported net income of $30,000.

**Please show work**